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    Question ID: 155369Country: India

    Title: Not to complete the residential project in time

    Question: I am running a construction company, in which I am director we have launched one residential project in 2013 Nov and time to complete it was in Nov 2016, but not completed yet. As you know the economic condition of real estate. We don’t have sale also I am working on 56 flats on which we sold 44 only. Clients are regularly asking for possession. In my contract of sale I have written two condition for alotee, (i) I will charge on late EMI 18% ANN UM. (2) I will pay 10 thousand per month how much I delay to give possession. Remarks:- I have to intention to charge any amount on delay payment, that line is part of ATP (agreement to purchase) I know that is haram for me. (2) In this project I took fund from my real brother he helped me by taking loan from bank too on his name and given to me on flat allotment in his name, but I pay the EMI of his fund. The flat is mortgage on bank. (3) But after all efforts still fund is short at least I need 70 lac to finish the project and handover. Allottees are continuously making pressure on us. (4) I have 12 flats to sale, is any way in this situation I can borrow any fund from any institution or any personal fund at extra cost to complete this project and handover to escape from any legal case. Please reply me what to do.

    Answer ID: 155369

    Bismillah hir-Rahman nir-Rahim !

    (Fatwa: 138/122/M=2/1439)


    Before starting any project one should calculate its possible income and expenditure. One should also know Shariah rulings pertaining to it and should start the work as per one’s capacity. It is not good to put oneself in trouble and sin without any reason. The two conditions of the contract which you have put are interest based hence they are haram and unlawful; it is necessary to avoid them. We don’t know any institution from where you could get your required fund. You can yourself get this information, but you should take care not to enter any interest based dealing. Hadith sternly warns against interest based dealings hence it is mandatory to avoid it.

    Allah (Subhana Wa Ta'ala) knows Best

    Darul Ifta,

    Darul Uloom Deoband, India